The AutoFX functionality is the process of IBKR automatically engaging in “spot” currency transactions on the customer’s behalf in order to flatten negative cash balances. This functionality will only occur for cash accounts and only for buy orders…
The automatic currency conversion required to settle your stock trade will be handled by IBKR using a conversion rate based on the prevailing foreign exchange market rates at the time of the execution. This conversion rate may include an adjustment above the standard market rate to account for settlement cycle differences, associated risks, and costs…
Clients can avoid the application of AutoFX functionality by ensuring they have sufficient settled funds in the trade currency before placing an order. If there are not enough funds in the required currency, an AutoFX transaction will automatically occur to cover the trade…
No, IBKR will not automatically convert proceeds from sell orders into your base currency. If you sell securities denominated in a different currency, the proceeds will remain in that currency. You can manually convert the proceeds back to your base currency if desired…
If you have sufficient settled funds in one currency and request a withdrawal in a different allowed currency, the AutoFX functionality will allow the withdrawal to proceed by automatically converting the required amount to flatten any resulting negative cash balance…